Orman Company produces neon-colored covers for tablets (e.g.,iPads). For last year, Orman reported the following:Work-in-process inventory, January 1 $ 13,250 Work-in-processinventory, December 31 28,250 Finished goods inventory, January 1113,000 Finished goods inventory, December 31 85,000 Directmaterials inventory, January 1 3,450 Direct materials inventory,December 31 2,700 Direct materials purchased 183,750 Direct labor138,000 Plant depreciation 19,500 Salary, production supervisor47,000 Indirect labor 68,300 Utilities, factory 15,700 Salescommissions 42,000 Salary, sales supervisor 75,000 Depreciation,factory equipment 32,000 Administrative expenses 168,000 Supplies(40% used in the factory, 60% used in the sales office) 18,000Advertising expense 43,600 Last year, Orman produced 89,000 unitsand sold 90,500 units at $10.50 per unit. Required: 1. Prepare astatement of cost of goods manufactured. Orman Company Statement ofCost of Goods Manufactured For Last Year Direct materials: $ Directmaterials used in production $ Manufacturing overhead: $ Totalmanufacturing costs added $ Cost of goods manufactured $ 2. Preparean absorption-costing income statement. Orman Company IncomeStatement: Absorption Costing For Last Year $ Cost of goods sold: $$ $ Less operating expenses: $ $